Stock / Symbol: S&P 500 INDEX / SPX
Price at trade post: $1362.75
Option Strategy: [private_monthly]bull put spread[/private_monthly]
Reasoning: We were expecting the SPX to pull back from it's recent highs but we think that [private_monthly] it should find support at the 1340 level. This trade needs the SPX to be trading higher than 1280 by May expiration and will yield about 15% if it does. If we get an upside reversal in the market, we may add a bear call spread, making this trade an iron condor.[/private_monthly]
Trade Details:[private_monthly]
STO -1 SPX May12 1280 put
BTO 1 SPX May12 1270 put
for a net credit of $1.30 per contract (day order, limit order)
Requirements
Cost/Proceeds ($130.00)
Option Requirement $1,000.00
Total Requirements $870.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $870
Max Reward: $130 or 14.9% by May 18
Profit Range: $1280 +
Suggested Stop @: $1300
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